China tariffs strain Saskatchewan pea trade

The farming community in Saskatchewan is facing challenges following China's decision to impose a 75.8 percent tariff on Canadian canola seed and a 100 percent tariff on canola meal and oil introduced earlier in March 2025. These measures have increased market uncertainty and raised concerns about the outlook for Canadian trade with China.

The Agricultural Producers Association of Saskatchewan (APAS) highlighted the importance of the canola sector to the Canadian economy. Bill Prybylski, President of APAS, stated, "The canola industry is pivotal. It generates over $43 billion in economic activity and sustains over 200,000 jobs across rural and urban areas of Canada. The government must ensure fair global market access to uphold the livelihoods of our farmers and their communities."

The tariffs come alongside China's anti-dumping investigation into Canadian pea starch, creating further difficulties for producers. Peas represent another key export crop for Saskatchewan, and additional restrictions could intensify financial pressures for farmers already dealing with volatile pricing and reduced access to international markets.

Prybylski noted, "These tariffs on canola and peas not only hit farmers in the pocketbook but threaten the stability and health of Saskatchewan's agriculture sector as a whole. When key exports like peas and canola are restricted, it's our rural and urban economies that bear the brunt. The government must step up now to secure access to these critical markets before the damage becomes long-lasting."

The Saskatchewan Urban Municipalities Association (SUMA) has echoed these concerns. Randy Goulden, President of SUMA, said, "Agriculture and agricultural processing are vital for the well-being of both communities in Saskatchewan. They create jobs and generate significant economic benefits for our cities, towns, villages, and northern communities. SUMA is united with APAS in demanding government action on the tariffs and a commitment to expanding global trade opportunities."

The tariffs also take place in the context of wider trade policies. August 26 marked one year since Canada imposed a 100 percent tariff on Chinese electric vehicles (EVs). These measures are scheduled for review by October 1, 2025. Prybylski linked the agricultural sector's challenges with broader trade policy, saying, "As we face these questionable tariffs from China, we must remember the interconnected nature of global trade. The upcoming review of the EV tariffs exemplifies how trade decisions in one sector can affect others, including agriculture."

He concluded by urging policymakers to consider wider implications when reviewing trade measures. "We urge the government to adopt a holistic approach to their EV review, ensuring they consider all implications and foster dialogue with international partners. For Canadian agriculture, maintaining fair access to global markets for our products remains essential amidst these broader trade discussions."